The Smart Marty Sky Dispatch
Ryanair to freeze wages, hike fares as fuel prices soar
Irish no-frills airline Ryanair said Monday it would launch a cost-cutting drive and hike fares next year to help offset the impact of soaring jet fuel prices driven by the Middle East war.
Ryanair said it will pursue cost-cutting measures and raise fares next year to offset higher jet fuel costs driven by the Middle East conflict. CEO Michael O’Leary indicated the fuel bill for the upcoming financial year is expected to rise by 2.0 billion euros.
The Dublin-based airline reported a 6% drop in profit after tax to 1.61 billion euros for its second quarter (three months to end-September) while revenue rose 4% to 5.7 billion euros.
Ryanair noted that fuel expenses not hedged with advance purchases had increased due to the US-Iran war, and warned that jet-fuel prices could stay elevated into 2027 if the Middle East conflict persists.
The carrier said it has hedged 80% of its fuel needs for the current year at around US$67 per barrel, but for 2027–2028 only a quarter of needs are hedged at about US$95 per barrel, still below current market levels.
O’Leary signaled double-digit fare increases across Europe in 2027 to cope with rising fuel costs, even as passenger traffic grew and fares dipped slightly in the latest quarter. The airline has also reduced its winter schedule in response to higher fuel costs and expects to carry about 214 million passengers in the current fiscal year.